3 Reasons You Should Consider Working with a Tax Relief Company
Posted on August 15, 2019 by
Tax debt may be the result of a failed business or hard times. While you may have moved on, this isn’t something you can ignore since the tax authorities will pursue you aggressively and have broad powers to collect. This is why they can threaten to do almost anything to get the next payment. Here are three reasons why you should consider working with a tax relief company if you’re currently experiencing tax issues.
They can Protect You from Property Seizure
The first thing the authorities will do is attach tax liens to your property. Fail to pay the debt, and they can leverage the lien to engage in asset seizure. This is where they may sell your house to pay unpaid property taxes or sell your car to pay part of your income tax debt.
Tax relief services like the Tax Group Center, for instance, will be able to help you to resolve tax liens and prevent seizure of assets. They’ll also be able to help you if your wages have been garnished or negotiate a deal if you can’t afford to pay the whole amount owed.
Tax authorities are not going to reduce your debt because you asked or said you can’t pay. You must have an expert negotiator on your side to settle the debt for less than it is worth. Even if they can only reduce the collection fees and interest, your tax debt becomes more manageable, while entering a debt settlement can stop the collections efforts that cause so much stress. Or the debt may be discharged altogether due to relief programs you aren’t aware of.
They can Your Reputation with Creditors
Unpaid debts will hurt your credit. However, the damage varies. The IRS has reconsidered reporting unpaid tax debt to credit reporting agencies. There was a time when lien judgments would appear on credit reports. Judgments at that time would remain on the credit report for seven years after you pay it off and ten years if you ignore it. While this policy has changed, judgments are still in the public domain and might be discovered by creditors. Avoiding judgment by working with a tax relief agency is a great way to make sure that doesn’t happen.
They Can Help Prevent Worst-Case Scenarios
A reliable tax relief company will guide you through the auditing process. This will ensure that you have all the documentation in order and valid explanations, minimizing the odds they hit you with a larger bill. This is especially true if you’re behind on your tax returns. Don’t be embarrassed. An estimated one in six Americans is struggling with tax problems, and many are behind on their tax returns. Consult with a tax relief firm to learn all of the options. If you do have to face the tax authorities, by having a professional advisor by your side, you won’t be scared into agreeing to something you can’t afford to pay.
Conclusion
Tax debt is intimidating due to the power tax agencies have to collect it. However, working with a tax relief company can be a great way to reduce your burden and get your financial life back on track.
